Moody's reviews Sotheby's

Moody's Investors Service said it placed Sotheby's long-term Ba2 corporate family and probability-of-default ratings and Ba3 (LGD5, 82%) senior unsecured note rating on review for downgrade.

The review reflects concern that the duration and depth of the current cyclical downturn in the international auction market may be more severe than expected, according to the agency.

The review also reflects Moody's belief that Sotheby's is at risk for a potential covenant violation under its existing bank credit facilities and faces the need to refinance its $250 million revolving credit given its expiration in September 2010, the agency noted.

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